Summer is here, and people’s thoughts turn to … changing titles?
I have recently received numerous requests for information about what is involved in transferring titles to land. Mostly it involves children. It can be done, but in my opinion, only after some thought and planning.
First, take a look at what kind of property it is. If you are considering your principal residence, transfers to certain persons are exempt from Property Transfer Tax.
Second, consider to whom you want to transfer title. The ﬁrst question here is whether the person involved lives at the property. If not, the result may be that the person transferring may incur a (taxable) capital gain.
Third, you need to consider whether the transfer should be a gift. That may assist with tax concerns.
Finally, consider the status of the person about to get on your title. If they are at risk for matrimonial issues or ﬁnancial trouble in the future, you may need to reconsider. In my view, it is not “the end of the world” if a person elects not to transfer and their property falls into their Estate, and then is exposed to Probate fees.
Whatever you choose to do, get good advice, and think carefully.
This ad appeared in the Richmond News on June 21, 2013.